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SAN FRANCISCO, Sept. 06, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Live Ventures Incorporated (NASDAQ: LIVE) investors with significant losses to submit your losses now.
Live Ventures Incorporated (LIVE) Securities Fraud Class Action:
The Complaint alleges that Defendants misrepresented Live’s financial performance, promotional activities, insider sales and executive compensation.
Specifically, Defendants (1) inflated Live’s earnings per share for FY 2016 by more than 40% by using an artificially low share count; (2) overstated Live’s pre-tax income for FY 2016 by 20% by prematurely recognizing income from future quarters; (3) misrepresented that Live’s acquisition of ApplianceSmart closed during Q1 2017 so that the Company could appear profitable; and (4) concealed that between FY 2016 - FY 2018, Live’s CEO received 94% more in compensation than reported.
On Aug. 3, 2021, the truth emerged when the SEC charged Live, its CEO, its CFO, and others with securities fraud. The SEC’s complaint alleges that Live and its CEO, Jon Isaac, recorded income from a backdated contract to boost Live’s pre-tax income for FY 2016 by 20%. Live and Isaac also allegedly overstated earnings per share by 40% by improperly understating Live’s outstanding share count. In addition, the SEC claims Isaac hired a stock promoter to boost interest in Live.
Finally, the SEC alleges Live Ventures misrepresented the date it acquired a subsidiary from Appliance Recycling Centers of America to report positive net income, and that the company materially underreported Isaac’s compensation.
On this news, the Company’s share price fell $29.08, or 46%, in a single trading day.
“We’re focused on investors’ losses and proving Live’s senior management cooked the company’s books,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Live and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Live should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email LIVE@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895